Sugar prices recently created pressure on household budgets. However, consumers now face another challenge as jaggery prices also rise. The traditional sweetener has become costly after a sharp increase in rates. Currently, jaggery prices have reached ₹80 to ₹90 per kilogram.
Earlier, jaggery sold around ₹40 to ₹50 per kilogram. Therefore, its price increase has surpassed sugar’s inflation impact.
India leads jaggery production globally
India does not need to import jaggery because domestic production remains strong. The country ranks first in jaggery production worldwide. Around 70 percent of global jaggery production comes from India.
Moreover, nearly 30 percent of India’s sugarcane production goes towards jaggery making.
Due to strong production capacity, India exported 471.9 metric tonnes of jaggery during 2025-26.
Why are jaggery prices increasing?
One major reason behind rising jaggery prices is the increase in sugar rates.
As sugar became expensive, people started choosing jaggery for sweetness. Consequently, demand for jaggery increased.
Meanwhile, old jaggery stock from the previous crushing season is almost finished.
Additionally, lower stock levels and delayed fresh crushing have affected availability. Therefore, expensive sugar has further pushed jaggery prices upward.
Ethanol production also impacts supply
Ethanol production has also affected jaggery availability.
A large share of sugarcane and its by-products now supports ethanol production. As a result, both sugar and jaggery production face pressure.
Festive demand increases pressure in South India
The festive season has already started, increasing demand for sweet products.
During Onam, jaggery and sugar supply faces additional pressure. Kerala and other southern states usually receive 80 trucks filled with sugar.
Each truck carries around 40 tonnes of sugar. However, during Onam, demand rises sharply.
States require nearly 240 trucks during the festival period. This means consumption increases by around 160 tonnes of sugar during Onam.
